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Berkman zata
Partner
ASSETS
Notes
Current Assets
Current Period
31 December 2012
Prior Period
31 December 2011
3.899.761.429
4.042.735.398
1.355.542.536
1.549.524.710
551.820.443
213.899.678
Trade receivables
10
777.402.622
764.775.891
Other receivables
11
754.126.100
792.699.876
Inventories
13
259.199.763
251.785.807
26
201.669.965
190.577.236
34
279.472.200
Non-current Assets
14.881.141.034
12.362.211.730
Other receivables
11
1.553.830.754
614.598.106
Financial assets
2.049.244
1.767.872
294.960.592
16
269.069.545
Investment property
17
57.985.000
54.720.000
18
12.693.339.589
11.092.594.872
Intangible assets
19
51.183.767
46.962.939
26
253.683.135
256.607.349
18.780.902.463
16.404.947.128
TOTAL ASSETS
The accompanying notes form an integral part of these consolidated financial statements.
LIABILITIES
Notes
Current Liabilities
Current Period
31 December 2012
Prior Period
31 December 2011
4.533.667.538
3.951.410.407
Financial debt
866.011.394
790.159.337
192.700.698
158.358.545
Trade payables
10
912.324.274
870.440.470
Other payables
11
153.494.125
151.332.850
35
5.368.643
Provisions
22
35.516.181
26.224.798
24
188.123.923
249.623.497
26
1.668.475.819
1.279.313.640
26
517.021.124
420.588.627
8.842.191.336
7.954.609.080
Financial debt
7.800.982.204
7.122.723.496
Other payables
11
15.659.634
11.439.394
24
234.019.405
191.632.448
35
744.083.660
574.679.843
26
47.446.433
54.133.899
5.405.043.589
4.498.927.641
SHAREHOLDERS EQUITY
Equity Attributable to Shareholders of Parent
Share capital
27
1.200.000.000
1.200.000.000
27
1.123.808.032
1.123.808.032
27
39.326.341
39.326.341
27
570.111.018
798.590.878
27
( 45.384.871)
( 46.613.446)
Retained earnings
27
1.383.815.836
1.365.299.204
27
1.133.367.233
18.516.632
18.780.902.463
16.404.947.128
The accompanying notes form an integral part of these consolidated financial statements.
Notes
Current Period
1 January
31 December 2012
Prior Period
1 January
31 December 2011
Sales revenue
28
14.909.003.818
11.812.549.908
28
(11.893.596.710)
(9.803.269.512)
3.015.407.108
2.009.280.396
29
( 1.593.367.677)
( 1.284.859.256)
(365.283.678)
GROSS PROFIT
Marketing and sales expenses (-)
Administrative expenses (-)
29
(374.221.814)
31
600.682.892
160.190.646
31
(43.666.621)
(396.680.737)
1.604.833.888
122.647.371
OPERATING PROFIT
Share of investments profit accounted byusing the
equity method
16
5.149.234
10.074.016
Financial income
32
162.136.645
264.238.277
33
(414.741.611)
(251.070.672)
1.357.378.156
145.888.992
Tax expense
(224.010.923)
(127.372.360)
35
(32.616.486)
(16.770.183)
35
(191.394.437)
(110.602.177)
1.133.367.233
18.516.632
(228.479.860)
795.001.243
1.535.719
(77.496.523)
(307.144)
15.499.305
( 227.251.285)
733.004.025
906.115.948
751.520.657
0,94
0,02
36
The accompanying notes form an integral part of these consolidated financial statements.
As of 31 December 2012
27
1.200.000.000 1.123.808.032
798.590.878
798.590.878
(61.997.218)
3.589.635
39.326.341
570.111.018
- (228.479.860)
39.326.341
39.326.341
795.001.243
39.326.341
751.520.657
86.443.361
(18.516.632)
18.516.632
18.516.632 1.365.299.204
18.516.632 1.365.299.204
(86.443.361)
1.228.575 1.133.367.233
(46.613.446)
(46.613.446)
18.516.632
Retained
earnings
286.443.361 1.278.855.843
- (200.000.000)
15.383.772
Currency
translation
Cash flow Net profit for
adjustment hedge reserves
the year
The accompanying notes form an integral part of these consolidated financial statements.
1.200.000.000 1.123.808.032
As of 31 December 2011
1.200.000.000 1.123.808.032
200.000.000
1.000.000.000 1.123.808.032
As of 31 December 2011
27
27
27
As of 31 December 2010
Notes
Inflation
difference on
shareholders
Restricted
Share capital
equity profit reserves
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
5.405.043.589
906.115.948
4.498.927.641
4.498.927.641
3.747.406.984
Total
Notes
18-19
24
22
32
31
16
33
10
17
32-33
24
18-19
Current Period
1 January31 December 2012
1.357.378.156
Prior Period
1 January31 December 2011
145.888.992
1.029.762.920
51.071.434
8.336.506
(129.243.516)
(3.717.189)
( 351.142.323)
(5.149.234)
208.066.460
(1.572.071)
58.946.716
13.362.362
( 6.333.810)
(25.503.133)
2.204.263.278
( 65.444.030)
( 396.249.212)
(21.699.604)
(21.935.054)
(11.578.616)
91.357.686
15.625.319
104.570.655
(47.707.008)
463.637.936
2.314.841.350
(21.791.662)
(212.951.730)
( 40.264.472)
2.039.833.486
811.848.621
43.712.634
5.654.965
(77.277.018)
(5.400.013)
329.671.432
(10.074.016)
204.097.145
(3.746.701)
17.436.691
25.733.253
5.169.703
8.879.487
1.501.595.175
(74.080.593)
(149.193.114)
(36.746.558)
27.370.907
11.918.075
90.682.688
15.065.985
39.474.917
111.816.923
224.050.649
1.761.955.054
(27.610.424)
(168.515.067)
(13.587.608)
1.552.241.955
38.780.303
172.834.230
(759.657.869)
(588.878.369)
(353.211.312)
( 9.603.468)
( 1.499.736.485)
20.246.527
94.039.511
(1.088.704.104)
929.467.323
(117.786.293)
( 11.681.249)
( 174.418.285)
( 762.001.461)
27.922.286
( 734.079.175)
( 193.982.174)
1.549.524.710
1.355.542.536
( 628.472.899)
( 15.750.096)
1.987.483
( 642.235.512)
735.588.158
813.936.552
1.549.524.710
(*)
TL 1,869,587,363 portion of property and equipment and intangible assets purchases in total of TL 2,629,245,232 for the year ended 31 December 2012 was financed
through finance leases. (31 December 2011: TL 3,236,232,943 portion of property and equipment and intangible assets purchases in total of TL 4,324,937,047 was
financed through leases.)
The accompanying notes form an integral part of these consolidated financial statements.
31 December 2011
49.12 %
49.12 %
50.88 %
50.88 %
100.00 %
100.00 %
Total
The total number of employees working for the Company and its subsidiaries (together the Group) as of 31 December
2012 is 19,109. (31 December 2011: 18,489). The average number of employees working for the Group for the year ended
31 December 2012 and 2011 are 18,789 and 18,104, respectively. The Company is registered in stanbul, Turkey and its
head office address is as follows:
Trk Hava Yollar A.O. Genel Ynetim Binas, Atatrk Havaliman, 34149 Yeilky STANBUL. The Companys stocks are
traded on the Istanbul Stock Exchange since 1990.Subsidiaries of the Company are THY Teknik A.. (THY Teknik), HABOM
Havaclk Bakm Onarm ve Modifikasyon Merkezi A.. (HABOM), and THY Aydn ldr Havaliman letme A...
Group management decisions regarding resources to be allocated to departments and examines the results and the
activities on the basis of air transport and aircraft technical maintenance services for the purpose of departments
performance evaluation. Each member of the Group companies prepares its financial statements in accordance with
accounting policies are obliged to comply. The Groups main business of topics can be summarized as follows.
Air Transport (Aviation)
The Companys main activity is domestic and international passenger and cargo air transportation.
Technical Maintenance Services (Technical)
The Companys main activity is giving repair and maintenance service on civil aviation sector and giving all kinds of
technical and infrastructure support related to airline industry.
Approval of Financial Statements
Board of Directors has approved the consolidated financial statements as of 31 December 2012 and delegated authority
for publishing it on 14 March 2013. General shareholders meeting has the authority to modify the financial statements.
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
2.1 Basis of Presentation
Basis of Preparation for Financial Statements and Significant Accounting Policies
The Company and its subsidiaries registered in Turkey maintain their books of account and prepare their statutory
financial statements in accordance with accounting principles in the Turkish Commercial Code and Tax Legislation.
The Capital Markets Board (CMB) has established principles, procedures and basis on the preparation of financial
reports by enterprises and the representation of the reports with Communiqu Series XI, No: 29 Communiqu on Capital
Market Financial Reporting Standards. This Communiqu is applicable for the first interim financial statements to be
prepared after 1 January 2008 and with this Communiqu, the Communiqu Series XI, No: 29 Communiqu on Capital
Market Accounting Standards has been repealed. In accordance with this Communiqu, the companies are supposed
to prepare their financial statements in accordance with the International Financial Reporting Standards (IAS/IFRS)
accepted by the European Union. Nevertheless, until the discrepancies between the IAS/IFRS accepted by the European
Union, and the IAS/IFRS declared by IASB are announced by the Turkish Accounting Standards Board (TASB), IAS/IFRS
will be in use. Under these circumstances, Turkish Accounting Standards/Turkish Financial Reporting Standards (TAS/
TFRS), which are the standards published by TASB, not contradicting with IAS/IFRS will be predicated on.
The accompanying consolidated financial statements have been prepared in accordance with IFRS and comply with
CMBs decree announce on 17 April 2008 and 9 January 2009 regarding the format of the financial statements and
footnotes since at the date of the issuance of these financial statements the differences of IAS/IFRS accepted by the
European Union are not declared by the TASB that are accounted at fair value.
Statutory Decree No: 660, which has been become effective and published in the Official Gazette on 2 November 2011,
and the Additional Clause 1 of the Law No: 2499 were nullified and accordingly, Public Oversight, Accounting and Audit
Standards Institution (the Institution) was established. As per Additional Article 1 of the Statutory Decree, applicable
laws and standards will apply until new standards and regulations be issued by the Institution and will become
effective. In this respect, the respective matter has no effect over the Basis of The Preparation of Financial Statements
Note disclosed in the accompanying financial statements as of the reporting date.
All financial statements, except for investment property and derivative financial instruments, have been prepared on
cost basis principal.
Currency Used In Financial Statements
Country of
Registration
THY Teknik
100%
100%
Turkey
HABOM
100%
100%
Turkey
100%
Turkey
The balance sheet and statement of comprehensive income of the subsidiaries were consolidated on the basis of full
consolidation. The carrying value of the investment held by the Group and its Subsidiaries were eliminated against the
related shareholders equity. Intercompany transactions and balances between the Group and its Subsidiaries were
eliminated during consolidation process.
c) The Group has nine joint ventures. These joint ventures are economical activities that decisions about strategic
finance and operating policy are jointly controlled by the consensus of the Group and other participants. The affiliates
are controlled by the Group jointly, and are accounted for by using the equity method.
The table below sets out consolidated affiliates and indicates the proportion of ownership interest of the Company in
these affiliates as of 31 December 2012:
Company Name
Country of
Registration and
Operations
Ownership
Share
Voting
Power
Principal Activity
Turkey
%50
Turkey
%50
%50
Turkey
%49
%49
Maintenance
Turkey
%50
%50
Ground Services
Turkey
%50
%50
Fuel
Turkey
%40
%40
Maintenance
Turkey
%50
%50
Cabin Interior
Turkey
%51
%51
Cabin Interior
Turkey
%50
%50
Maintenance
Bosnia Herzegovina
Federation
Aircraft
Transportation
Catering Services
Share percentage and voting rights are the same in the year 2012 and 2011.
Ownership is dissolved as of 2012.
(**)
According to the equity method, subsidiaries are stated as the cost value adjusted as deducting the impairment in
subsidiary from the change occurred in the subsidiarys assets after the acquisition date that is calculated by the
Groups share in the consolidated balance sheet. Subsidiarys losses that exceed the Groups share are not considered
(actually, that contains a long term investment which composes the net investment in the subsidiary).
2.2 Changes in Accounting Policies
Significant changes in accounting policies and significant accounting errors are applied retrospectively and prior period
financial statements should be restated. Changes in accounting estimates should be applied prospectively, if only for a
period in which the change in current period. If it relates to future periods they are recognized to prospectively both in
the current period and in the future period.
2.3 Offsetting
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right to set off the recognized amounts and there is an intention to settle on a net basis, or realize the asset
and settle the liability simultaneously.
2.4 New and Revised International Financial Reporting Standards
(a) Amendments to IFRSs affecting amounts reported in the financial statements
None.
10
(b) New and Revised IFRSs applied with no material effect on the consolidated financial statements
Amendments to IFRS 7 Disclosures - Transfers of Financial Assets
The amendments to IFRS 7 increase the disclosure requirements for transactions involving transfers of financial
assets. These amendments are intended to provide greater transparency around risk exposures when a financial asset
is transferred but the transferor retains some level of continuing exposure in the asset. The amendments also require
disclosures where transfers of financial assets are not evenly distributed throughout the period.
These amendments to IFRS 7 did not have a significant effect on the Groups disclosures. However, if the Group enters
into other types of transfers of financial assets in the future, disclosures regarding those transfers may be affected.
Amendments to IAS 12 Deferred Taxes Recovery of Underlying Assets
The amendment is effective for annual periods beginning on or after 1 January 2012. IAS 12 requires an entity to
measure the deferred tax relating to an asset depending on whether the entity expects to recover the carrying amount of
the asset through use or sale. It can be difficult and subjective to assess whether recovery will be through use or through
sale when the asset is measured using the fair value model in IAS 40 Investment Property. The amendment provides
a practical solution to the problem by introducing a presumption that recovery of the carrying amount will, normally
be, through sale. The investment properties of the Group are carried at fair value, and the deferred tax relating to these
assets is measured with the presumption that the recovery of the carrying amount will be through sale. Hence, the
amendment did not have any effect on the consolidated financial statements.
(c) New and revised IFRSs in issue but not yet effective
The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:
Amendments to IAS 1
Presentation of Items of Other Comprehensive Income1
Amendments to IAS 1
Clarification of the Requirements for Comparative Information2
IFRS 9
Financial Instruments5
IFRS 10
Consolidated Financial Statements3
IFRS 11
Joint Arrangements3
IFRS 12
Disclosure of Interests in Other Entities3
IFRS 13
Fair Value Measurement3
Amendments to IFRS 7
Disclosures Offsetting Financial Assets and Financial Liabilities3
Amendments to IFRS 9 and IFRS 7
Mandatory Effective Date of IFRS 9 and Transition Disclosures5
Amendments to IFRS 10, IFRS 11
Consolidated Financial Statements, Joint Arrangements and
and IFRS 12
Disclosures of Interests in Other Entities: Transition Guide3
IAS 19 (as revised in 2012)
Employee Benefits3
IAS 27 (as revised in 2012)
Separate Financial Statements3
IAS 28 (as revised in 2012)
Investments in Associates and Joint Ventures3
Amendments to IAS 32
Offsetting Financial Assets and Financial Liabilities4
Amendments to IFRSs
Annual Improvements to IFRSs 2009-2012 Cycle except for the amendment to
IAS 13
IFRIC 20
Stripping Costs in the Production Phase of a Surface Mine3
1
11
All recognized financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and
Measurement to be subsequently measured at amortized cost or fair value. Specifically, debt investments that are
held within a business model whose objective is to collect the contractual cash flows, and that have contractual
cash flows that are solely payments of principal and interest on the principal outstanding are generally measured
at amortized cost at the end of subsequent accounting periods. In addition, under IFRS 9, entities may make an
irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for
trading) in other comprehensive income, with only dividend income generally recognized in profit or loss.
With regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9
requires that the amount of change in the fair value of the financial liability that is attributable to changes in
the credit risk of that liability, is presented in other comprehensive income, unless the recognition of the effects
of changes in the liabilitys credit risk in other comprehensive income would create or enlarge an accounting
mismatch in profit or loss. Changes in fair value attributable to a financial liabilitys credit risk are not subsequently
reclassified to profit or loss. Previously, under IAS 39, the entire amount of the change in the fair value of the
financial liability designated as at fair value through profit or loss was presented in profit or loss.
12
The Group management anticipates that the application of IFRS 9 in the future may not have significant impact on
amounts reported in respect of the Groups financial assets and financial liabilities.
New and revised Standards on consolidation, joint arrangements, associates and disclosures
In May 2011, a package of five Standards on consolidation, joint arrangements, associates and disclosures was issued,
including IFRS 10, IFRS 11, IFRS 12, IAS 27 (as revised in 2011) and IAS 28 (as revised in 2011).
Key requirements of these five Standards are described below.
IFRS 10 replaces the parts of IAS 27 Consolidated and Separate Financial Statements that deal with consolidated
financial statements. SIC-12 Consolidation - Special Purpose Entities will be withdrawn upon the effective date of IFRS
10. Under IFRS 10, there is only one basis for consolidation, that is control. In addition, IFRS 10 includes a new definition
of control that contains three elements: (a) power over an investee, (b) exposure, or rights, to variable returns from its
involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of the investors
return. Extensive guidance has been added in IFRS 10 to deal with complex scenarios.
IFRS 11 replaces IAS 31 Interests in Joint Ventures. IFRS 11 deals with how a joint arrangement of which two or more
parties have joint control should be classified. SIC-13 Jointly Controlled Entities - Non-monetary Contributions by
Venturers will be withdrawn upon the effective date of IFRS 11. Under IFRS 11, joint arrangements are classified as joint
operations or joint ventures, depending on the rights and obligations of the parties to the arrangements. In contrast,
under IAS 31, there are three types of joint arrangements: jointly controlled entities, jointly controlled assets and
jointly controlled operations. In addition, joint ventures under IFRS 11 are required to be accounted for using the equity
method of accounting, whereas jointly controlled entities under IAS 31 can be accounted for using the equity method of
accounting or proportional consolidation.
IFRS 12 is a disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements,
associates and/or unconsolidated structured entities. In general, the disclosure requirements in IFRS 12 are more
extensive than those in the current standards.
In June 2012, the amendments to IFRS 10, IFRS 11 and IFRS 12 were issued to clarify certain transitional guidance on
the application of these IFRSs for the first time.
These five standards together with the amendments regarding the transition guidance are effective for annual periods
beginning on or after 1 January 2013, with earlier application permitted provided all of these standards are applied
at the same time. The Group management anticipates that the application of these five standards may not have any
significant impact on amounts reported in the consolidated financial statements.
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value
measurements. The Standard defines fair value, establishes a framework for measuring fair value, and requires
disclosures about fair value measurements. The scope of IFRS 13 is broad; it applies to both financial instrument items
and non-financial instrument items for which other IFRSs require or permit fair value measurements and disclosures
about fair value measurements, except in specified circumstances. In general, the disclosure requirements in IFRS
13 are more extensive than those required in the current standards. For example, quantitative and qualitative disclosures
based on the three-level fair value hierarchy currently required for financial instruments only under IFRS 7 Financial
Instruments: Disclosures will be extended by IFRS 13 to cover all assets and liabilities within its scope.
13
IFRS 13 is effective for annual periods beginning on or after 1 January 2013, with earlier application permitted.
The Group management anticipates that IFRS 13 will be adopted in the Groups consolidated financial statements for
the annual period beginning 1 January 2013 and that the application of the new Standard may not affect the amounts
reported in the financial statements.
Amendments to IFRS 7 and IAS 32 Offsetting Financial Assets and Financial Liabilities and the related disclosures
The amendments to IAS 32 clarify existing application issues relating to the offset of financial assets and financial
liabilities requirements. Specifically, the amendments clarify the meaning of currently has a legally enforceable right of
set-off and simultaneous realization and settlement.
The amendments to IFRS 7 require entities to disclose information about rights of offset and related arrangements (such
as collateral posting requirements) for financial instruments under an enforceable master netting agreement or similar
arrangement.
The amendments to IFRS 7 are effective for annual periods beginning on or after 1 January 2013 and interim periods
within those annual periods. The disclosures should be provided retrospectively for all comparative periods. However, the
amendments to IAS 32 are not effective until annual periods beginning on or after 1 January 2014, with retrospective
application required.
The Group management anticipates that the application of these amendments to IAS 32 and IFRS 7 may result in more
disclosures being made with regard to offsetting financial assets and financial liabilities in the future.
IAS 19 Employee Benefits
The amendments to IAS 19 change the accounting for defined benefit plans and termination benefits. The most
significant change relates to the accounting for changes in defined benefit obligations and plan assets. The
amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they
occur, and hence eliminate the corridor approach permitted under the previous version of IAS 19 and accelerate the
recognition of past service costs. The amendments require all actuarial gains and losses to be recognized immediately
through other comprehensive income in order for the net pension asset or liability recognized in the consolidated
statement of financial position to reflect the full value of the plan deficit or surplus. Furthermore, the interest cost and
expected return on plan assets used in the previous version of IAS 19 are replaced with a net-interest amount, which is
calculated by applying the discount rate to the net defined benefit liability or asset. The amendments to IAS 19 require
retrospective application. However, the Group management has not yet performed a detailed analysis of the impact of
the application of the amendments and hence has not yet quantified the extent of the impact.
Annual Improvements to IFRSs 2009 - 2011 Cycle issued in May 2012
The Annual Improvements to IFRSs 2009 - 2011 Cycle include a number of amendments to various IFRSs. The
amendments are effective for annual periods beginning on or after 1 January 2013. Amendments to IFRSs include:
14
Amendments to IAS 16
The amendments to IAS 16 clarify that spare parts, stand-by equipment and servicing equipment should be classified
as property, plant and equipment when they meet the definition of property, plant and equipment in IAS 16 and as
inventory otherwise. The Group management does not anticipate that the amendments to IAS 16 will have a significant
effect on the Groups consolidated financial statements.
Amendments to IAS 32
The amendments to IAS 32 clarify that income tax relating to distributions to holders of an equity instrument and
to transaction costs of an equity transaction should be accounted for in accordance with IAS 12 Income Taxes. The
Group management does not anticipate that the amendments to IAS 32 will have a significant effect on the Groups
consolidated financial statements.
2.5 Summary of Significant Accounting Policies
Significant accounting policies applied in the preparation of accompanying consolidated financial statements are as
follows
2.5.1 Revenue
Rendering of services:
Revenue is measured at the fair value of the consideration received or to be received. Passenger fares and cargo
revenues are recorded as operating revenue when the transportation service is provided. Tickets sold but not yet used
(unflown) are recorded as passenger flight liabilities.
The Group develops estimations using historical statistics and data for unredeemed tickets. Total estimated
unredeemed tickets are recognized as operating revenue. Agency commissions to relating to the passenger revenue are
recognized as expense when the transportation service is provided.
Aircraft maintenance and infrastructure support services are accrued with regard to invoices prepared subsequent to the
services.
Dividend and interest income:
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that assets net carrying amount.
Dividend income generated from equity investments is registered as shareholders gain the dividend rights.
2.5.2 Inventories
Inventories are stated at the lower of cost and net realizable value. Cost of inventories is the sum of all costs of purchase,
costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Average cost method is applied in the calculation of cost of inventories. Net realizable value represents the estimated
selling price less all estimated costs of completion and costs necessary to make a sale.
15
Residual Value
- Buildings
25-50
15-20
10-30%
30
10%
3-8
3-7
10-20
10%
3-15
3-15
- Motor Vehicles
- Other Equipments
- Leasehold improvements
16
4-7
4-15
17
Group determined aircrafts, spare engines and simulators together (Aircrafts) as lower-line cash generating unit
subject to impairment and impairment calculation was performed for Aircrafts collectively. In the examination of
whether net book values of aircrafts, spare engines and simulators exceed their recoverable amounts, the higher value
between value in use and sale expenses deducted net selling prices in US Dollars is used for determination of recoverable
amounts. Net selling price for the aircrafts is determined according to second hand prices in international price guides.
In the accompanying financial statements, the change in the differences between net book values of these assets and
recoverable amounts are recognized as provision income/losses under income/losses from other operations account.
2.5.8 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of
those assets, until such time as the assets are substantially ready for their intended use or sale.
2.5.9 Financial Instruments
Financial assets and liabilities are recorded in the balance sheet when the Group is a legal party to these financial
instruments.
a) Financial assets
Financial investments are recognized and derecognized on a trade date where the purchase or sale of an investment
is under a contract whose terms require delivery of the investment within the timeframe established by the market
concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as
at fair value through profit or loss, which are initially measured at fair value.
Financial assets are classified into the following specified categories: financial assets as at fair value through profit or
loss (FVTPL), held-to-maturity investments, available-for-sale (AFS) financial assets and loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial
recognition.
Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss where the Group acquires the
financial asset principally for the purpose of selling in the near term, the financial asset is a part of an identified
portfolio of financial instruments that the Group manages together and has a recent actual pattern of short term profit
taking as well as derivatives that are not designated and effective hedging instruments.
Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognized in
profit or loss incorporates any dividend or interest earned on the financial asset.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset, or where appropriates a shorter period.
Income is recognized on an effective interest basis for held-to-maturity investments, available-for-sale financial assets
and loans and receivables.
18
19
20
Average Rate
1,7826
1,7922
1,8889
1,6708
1,5460
1,4990
The closing and average US Dollar - Euro exchange rates for the periods are as follows:
Closing Rate
Average Rate
1,3193
1,2856
1,2938
1,3912
1,3254
1,3266
21
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the
present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected
to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.
Onerous Contracts
Present liabilities arising from onerous contracts are calculated and accounted for as provision.
It is assumed that an onerous contract exists if Group has a contract which unavoidable costs to be incurred to settle
obligations of the contract exceed the expected economic benefits of the contract.
2.5.14 Segmental Information
There are two operating segments of the Group, air transportation and aircraft technical maintenance operations; these
include information for determination of performance evaluation and allocation of resources by the management. The
Company management uses the operating profit calculated according to financial reporting standards issued by the
Capital Markets Board while evaluating the performances of the segments.
2.5.15 Investment Property
Investment properties, which are properties, held to earn rentals and/or for capital appreciation are measured initially at
cost, including transaction costs.
Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the
balance sheet date.
Gains or losses arising from changes in the fair values of investment properties are included in the profit or loss in the
year in which they arise.
Investment properties are derecognized when either they have been disposed of or when the investment property is
permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on
the retirement or disposal of an investment property are recognized in profit or loss in the year of retirement or disposal.
2.5.16 Taxation and Deferred Tax
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore,
provisions for taxes, as reflected in the accompanying consolidated financial statements, have been calculated on a
separate-entity basis.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
income statement because it excludes items of income or expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Groups liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the balance sheet date.
22
Deferred Tax
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases which is used in the computation of taxable profit, and is accounted for
using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if
the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries
and affiliates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with such investments and interests are only recognized
to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences
that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends
to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate to items
credited or debited directly to equity, in which case the tax is also recognized directly in equity, or where they arise from
the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into
account in calculating goodwill or determining the excess of the acquirers interest in the net fair value of the acquirers
identifiable assets, liabilities and contingent liabilities over cost.
2.5.17 Government Grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises
as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose
primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognised
as deferred revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic
and rational basis over the useful lives of the related assets.
23
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of
giving immediate financial support to the Group with no future related costs are recognised in profit or loss in the period
in which they become receivable.
The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the
difference between proceeds received and the fair value of the loan based on prevailing market interest rates.
2.5.18 Employee Benefits / Retirement Pay Provision
Under Turkish law and union agreements, lump sum payments are made to employees retiring or involuntarily
leaving the Group. Such payments are considered as being part of defined retirement benefit plan as per International
Accounting Standard 19 (revised) Employee Benefits (IAS 19). The retirement benefit obligation recognized in the
balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized actuarial gains
and losses.
2.5.19 Statement of Cash flows
In statement of cash flows, cash flows are classified according to operating, investment and finance activities.
Cash flows from operating activities reflect cash flows generated from sales of the Group.
Cash flows from investment activities express cash used in investment activities (direct investments and financial
investments) and cash flows generated from investment activities of the Group.
Cash flows relating to finance activities express sources of financial activities and payment schedules of the Group.
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments
which their maturities are three months or less from date of acquisition and that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
2.5.20 Share Capital and Dividends
Common shares are classified as equity. Dividends on common shares are recognized in equity in the period in which
they are approved and declared.
2.5.21 Manufacturers Credits
Manufacturers credits are received against acquisition or lease of aircraft and engines. The Group records these
credits as a reduction to the cost of the owned and amortizes them over the related assets remaining economic life.
Manufacturers credits related to operating leases are recorded as deferred revenue and amortized over the lease term.
2.5.22 Maintenance and Repair Costs
Regular maintenance and repair costs for owned and leased assets are charged to operating expense as incurred.
Aircraft and engine overhaul maintenance checks for owned and finance leased aircrafts are capitalized and depreciated
over the shorter of the remaining period to the following overhaul maintenance checks or the remaining useful life of the
aircraft and delivery maintenance checks of operating leased aircraft are accrued on a periodical basis.The maintenance
expenses for the operational leased aircrafts are accrued on a periodical basis.
24
25
The main factors which are considered include future earnings potential; cumulative losses in recent years; history of
loss carry-forwards and other tax assets expiring; the carry-forward period associated with the deferred tax assets; future
reversals of existing taxable temporary differences; tax-planning strategies that would, if necessary, be implemented,
and the nature of the income that can be used to realize the deferred tax asset. As a result of the assessment made,
the Group has recognized deferred tax assets because it is probable that taxable profit will be available sufficient to
recognize deferred tax assets.
Corporate Tax Law 32/A and the effects of Resolution issued on Government Assistance for Investments by the Council
of Ministers:
A new incentive standard that reconstitutes government assistance for investments has been developed with the
addition to the clause 32/A of the Corporate Tax Law to be effective from 28 February 2009 with the 9th article of
the 5838 numbered Law in order to support investments through taxes on income. The new investment system
becomes effective upon the issuance of the Council of Ministers resolution Government Assistance for Investments
No:2009/15199 on 14 July 2009. Apart from the previous investment incentive application, which provides the
deduction of certain portion of investment expenditures against corporate tax base, the new support system aims
to provide incentive support to companies by deducting contribution amount, which is calculated by applying the
contribution rate prescribed in the Council of Ministers resolution over the related investment expenditure, against the
corporate tax imposed on the related investment to the extent the amount reaches to the corresponding contribution
amount.
The Group has obtained an Incentive Certificate dated 28 December 2010 and numbered 99256 from Turkish Treasury.
For the related 89 aircrafts to be obtained in 2011-2015, 20% of investment assistance and 50% of reduction in the
corporate tax rate will be used. The contribution amount that will be deducted from the corporate tax calculated over the
earnings arising from the related investment, which will be used in the following years for the aircrafts delivered as of 31
December 2012 is TL 1,927,613,595.
There is no clear guidance in regards to the accounting for government tax incentives on investments in IAS 12 Income
Tax and IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. Since contribution
amount exemption as explained in the new investment support system depends on the earnings from the related
investment and the recovery of the related asset and utilization of contribution amount will be over many years, the
Group management considers that the accounting for the related investment assistance will be more appropriate if the
grant is classified as deferred income which is recognized as income on a systematic and rational basis over the useful
life of the related assets, as explained in the paragraphs 24 and 26 of IAS 20.
3. BUSINESS COMBINATIONS
None.
4. JOINT VENTURES
See Note 16.
5. SEGMENTAL REPORTING
The management of the Group investigates the results and operations based on air transportation and aircraft technical
maintenance services in order to determine in which resources to be allocated to segments and to evaluate the
performances of segments. The detailed information on the sales data of the Group is given in Note 28.
26
31 December 2012
31 December 2012
Aviation
18.599.417.257
16.343.318.557
Technic
1.235.350.264
1.097.317.847
Total
19.834.767.521
17.440.636.404
(1.053.865.058)
(1.035.689.276)
18.780.902.463
16.404.947.128
Total Liabilitites
31 December 2012
31 December 2011
Aviation
13.227.597.569
11.749.418.618
Technic
309.832.394
248.997.863
13.537.429.963
11.998.416.481
Total
Less: Eliminations due to consolidation
Total liabilitites in consolidated financial statements
5.2 Net Operating Profit / (Loss)
(161.571.089)
(92.396.994)
13.375.858.874
11.906.019.487
Segment Results:
Aviation
Technic
Inter-segment
elimination
Total
14.757.656.302
151.347.516
14.909.003.818
48.332.280
686.807.235
(735.139.515)
14.805.988.582
838.154.751
(735.139.515)
14.909.003.818
(11.901.788.465)
(712.824.923)
721.016.678
(11.893.596.710)
2.904.200.117
125.329.828
(14.122.837)
3.015.407.108
(9.306.890)
814.719
(1.593.367.677)
(299.240.572)
(82.315.076)
7.333.834
(374.221.814)
588.287.879
12.395.013
600.682.892
(32.184.455)
(11.482.166)
(43.666.621)
1.576.187.463
34.620.709
(5.974.284)
1.604.833.888
25.619.466
(20.470.232)
5.149.234
162.291.396
(154.751)
162.136.645
Operating profit
Share of investment profit accounted by
using the equity method
Financial income
Financial loss (-)
(414.704.535)
(37.076)
(414.741.611)
1.349.393.790
13.958.650
(5.974.284)
1.357.378.156
27
Aviation
11.599.965.757
29.362.804
11.629.328.561
(9.758.673.723)
1.870.654.838
Technic
212.584.151
614.148.458
826.732.609
(683.918.768)
142.813.841
Inter-segment
elimination
(643.511.262)
(643.511.262)
639.322.979
(4.188.283)
Total
11.812.549.908
11.812.549.908
(9.803.269.512)
2.009.280.396
(1.276.690.263)
(308.517.820)
149.421.032
(382.377.742)
52.490.045
(8.653.848)
(60.147.481)
17.881.114
(15.637.879)
76.255.747
484.855
3.381.623
(7.111.500)
1.334.884
(6.098.421)
(1.284.859.256)
(365.283.678)
160.190.646
(396.680.737)
122.647.371
40.112.749
274.324.770
(251.062.433)
115.865.131
(30.038.733)
(3.253.302)
(8.299)
42.955.413
(6.833.191)
60
(12.931.552)
10.074.016
264.238.277
(251.070.672)
145.888.992
Aviation
Technic
Inter-segment
elimination
Total
25.619.466
(20.470.232)
5.149.234
Aviation
Technic
Inter-segment
elimination
Total
40.112.749
(30.038.733)
10.074.016
Aviation
Technic
Inter-segment
elimination
Total
2.517.406.545
126.241.939
2.643.648.484
964.625.827
65.137.093
1.029.762.920
206.971.401
62.098.144
269.069.545
Aviation
Technic
Inter-segment
elimination
Total
4.091.389.794
233.547.254
4.324.937.048
753.118.045
58.730.576
811.848.621
209.705.888
85.254.704
294.960.592
28
31 December 2011
1.836.473
5.959.669
1.121.913.532
1.291.657.138
222.290.264
213.883.414
9.502.267
38.024.489
1.355.542.536
1.549.524.710
Time Deposits:
Amount
Currency
Interest Rate
Maturity
813.916.500
TL
7.14% -9.22%
March 2013
125.082.952
EURO
2.81% -3.27%
March 2013
31 December 2012
825.411.927
296.501.605
1.121.913.532
Amount
Currency
Interest Rate
Maturity
31 December 2011
193.850.000
TL
6.30%-12.25%
February 2012
204.608.315
322.754.001
EUR
5.30%-6.25%
March 2012
790.619.702
153.906.163
USD
4.50%-6.25%
March 2012
296.429.121
1.291.657.138
7. FINANCIAL INVESTMENTS
Short-term financial investments are as follows:
31 December 2012
31 December 2011
476.958.794
133.533.101
74.861.649
80.366.577
551.820.443
213.899.678
29
Currency
Interest Rate
Maturity
41.827.004
USD
%3.53
April 2013
31 December 2012
75.250.687
170.000.000
TRY
%6.93-%7.27
April 2013
170.577.495
97.844.734
EUR
%3.19-%3.20
September 2013
231.130.612
476.958.794
Amount
Currency
Interest Rate
Maturity
20.000.000
TRY
%8.16-%9.60
April 2012
31 December 2011
20.000.000
46.457.607
EUR
%4.67-%5.50
June 2012
113.533.101
133.533.101
Long-term financial assets are as follows:
Sita Inc.
31 December 2012
31 December 2011
1.679.619
1.679.619
44.465
44.465
UATP Inc.
16.929
16.929
26.859
26.859
281.372
2.049.244
1.767.872
Sita Inc., Star Alliance GMBH, Emek naat ve letme A.. and UATP Inc. are disclosed at cost since they are not traded
in an active market.
Details of the long-term financial investments of the Group at 31 December 2012 are as follows:
Company Name
Sita Inc.
Ownership
Share
Voting
Power
UATP Inc.
30
Country of Registration
and Operations
Germany
5.55 %
USA
4%
Turkey
0.3%
5.55 %
Principal Activity
Information &
Telecommunication Services
Coordination Between Star
Alliance Member Airlines
Payment Intermediation
4% Between the Passenger and the
Airlines
0.3%
Construction
8. FINANCIAL BORROWINGS
Short-term financial borrowings are as follows:
31 December 2012
866.011.394
31 December 2011
790.159.337
31 December 2012
7.800.982.204
31 December 2011
7.122.723.496
31 December 2012
1.068.307.603
4.291.572.222
4.624.307.819
9.984.187.644
(1.317.194.046)
31 December 2011
964.312.250
3.599.737.058
4.498.997.066
9.063.046.374
(1.150.163.541)
8.666.993.598
7.912.882.833
31 December 2012
31 December 2011
3.355.700.565
5.311.293.033
8.666.993.598
3.984.803.923
3.928.078.910
7.912.882.833
Interest Range:
Floating rate obligations
Fixed rate obligations
As of 31 December 2012, the US Dollars and Euro denominated lease obligations weighted average interest rates are
4.14% (31 December 2011: 4.45%) for the fixed rate obligations and 0.61% (31 December 2011: 0.72%) for the floating
rate obligations.
9. OTHER FINANCIAL LIABILITIES
Short-term other financial liabilities of the Group are as follows:
31 December 2012
31 December 2011
161.636.622
154.871.082
31.064.076
3.487.463
192.700.698
158.358.545
Borrowings to banks account consists of overnight interest-free borrowings obtained for settlement of monthly tax and
social security premium payments.
31
Trade receivables
Due from related parties (Note 37)
Allowance for doubtful receivables
31 December 2012
831.808.273
18.975.259
(73.380.910)
777.402.622
31 December 2011
837.720.730
6.969.060
(79.913.899)
764.775.891
The Group provided provision for the receivables carried to legal proceedings and for the others by making historical
statistical calculations. Movement of the doubtful receivables for the period ended 31 December 2012 and 2011 are as
follows:
Opening Balance
Charge for the period
Collections during the period
Currency translation adjustment
Receivables written-off
Closing Balance
Explanations about the credit risk of Groups receivables are provided in Note 38 Credit Risk.
Short-term trade payables are as follows:
Trade payables
Due from related parties (Note 37)
Other
31 December 2012
695.190.493
215.000.995
2.132.786
912.324.274
31 December 2011
685.188.842
180.943.942
4.307.686
870.440.470
31 December 2012
475.603.418
160.469.134
97.545.951
11.832.018
2.751.021
2.511.696
8.531
3.404.331
754.126.100
31 December 2011
710.354.962
55.060.221
7.779.605
12.815.278
2.155.594
2.808.754
58.082
1.667.380
792.699.876
(*)
As of 31 December 2012, the balance of this account is related to bank balances and blocked deposits in
Johannesburg, Khartum, Cidde, Banglade, Akra, Addis Ababa, Takent, Sao Paulo, Mumbai, Kazablanka, Bingazi,
Misurata,and Tripoli.
32
31 December 2012
31 December 2011
1.167.114.676
409.666.323
176.900.543
107.714.141
44.013.416
44.677.053
31.563.519
26.601.535
20.534.470
17.683.343
13.673.264
11.496.227
28.526.223
1.643.236
1.484.013
65.136.878
1.553.830.754
614.598.106
(*)
As of 31 December 2012, the balance of this account is related to bank balances and blocked deposits in am, Tahran, iraz, Tebriz,
Kirmenah,and Mashad.
31 December 2011
40.187.640
24.514.696
36.021.871
56.256.374
24.282.062
34.799.256
21.881.619
24.359.807
20.187.231
5.256.463
Charter advances
1.041.539
2.202.096
Other liabilities
9.892.163
3.944.158
153.494.125
151.332.850
31 December 2012
31 December 2011
11.439.394
Long-term other payables are as follows:
None (31 December 2011: None).
13. INVENTORIES
Spare parts
Other inventories
Provision for impairment (-)
31 December 2012
31 December 2011
230.339.657
224.154.746
46.562.105
45.186.648
276.901.762
269.341.394
(17.701.999)
(17.555.587)
259.199.763
251.785.807
33
Movement in change of diminution in value of inventories for the periods ended 31 December 2012 and 2011.
1 January -
1 January -
31 December 2012
31 December 2011
17.555.587
14.368.647
(987.960)
3.186.940
Reversals
1.134.372
17.701.999
17.555.587
31 December 2012
31 December 2011
8.388.295
26.515.230
Turkish DO&CO
60.907.106
60.594.468
53.595.748
74.626.727
TGS
64.547.149
72.672.672
THY Opet
66.777.834
37.295.786
Sun Ekspress
Uak Koltuk
4.166.036
50.000
TCI
2.901.708
1.703.496
Trkbine Teknik
7.373.945
8.182.875
Goodrich
Air Bosna (Note 2.1)
411.724
1.744.878
11.574.460
269.069.545
Financial information for Sun Express as of 31 December 2012 and 31 December 2011 are as follows:
294.960.592
31 December 2012
31 December 2011
Total assets
647.916.867
714.361.841
Total liabilities
631.140.277
661.331.381
16.776.590
53.030.460
8.388.295
26.515.230
Shareholdersequity
Groups share in associates
shareholders equity
34
Revenue
Loss for the year
Groups share in loss for the year
Financial information for THY DO&CO Catering Services as of 31 December 2012 and 31 December 2011 are as follows:
Total assets
Total liabilities
Shareholdersequity
Groups share in associates
shareholders equity
Revenue
Profit for the year
Groups share in profit for the year
31 December 2012
248.740.873
126.926.662
121.814.211
31 December 2011
212.403.249
91.214.313
121.188.936
60.907.106
60.594.468
Financial information for P&W T.T Uak Bakm Merkezi Ltd. ti as of 31 December 2012 and 31 December 2011 are as
follows:
Total assets
Total liabilities
Shareholdersequity
Groups share in associates
shareholders equity
Revenue
Loss for the year
Groups share loss for the year
31 December 2012
225.834.697
116.455.611
109.379.086
31 December 2011
225.887.983
73.588.541
152.299.442
53.595.748
74.626.727
Financial information for TGS as of 31 December 2012 and 31 December 2011 are as follows:
Total assets
Total liabilities
Shareholdersequity
31 December 2012
31 December 2011
191.883.128
191.800.346
62.788.835
46.455.002
129.094.293
145.345.344
64.547.147
72.672.672
35
Revenue
Profit for the year
Groups share in profit for the year
331.119.437
304.587.085
12.910.948
32.819.926
6.455.474
16.409.963
By the protocol and capital increase dated on 17 September 2009, 50 % of TGS capital, which has a nominal value of
6,000,000 TL, was acquired by HAVA for 119,000,000 TL and a share premium at an amount of 113,000,000 TL has
arised in the TGSs capital. Because the share premium is related to the 5-year service contract between the Company
and TGS, the Companys portion (50 %) of the share premium under the shareholders equity of TGS was recognized as
Deferred Income (Note 26) to be amortized during the contract period.
Financial information for THY Opet Havaclk Yaktlar A.. as of 31 December 2012 and 31 December 2011 are as follows:
31 December 2012
31 December 2011
Total assets
578.119.047
415.486.059
Total liabilities
444.563.380
340.894.488
Shareholdersequity
133.555.667
74.591.571
66.777.834
37.295.786
Revenue
3.856.846.373
2.271.152.114
60.380.095
27.352.122
30.190.048
13.676.061
Financial information for Uak Koltuk retimi A.. as of 31 December 2012 and 31 December 2011 are as follows:
Total assets
Total assets
Total liabilities
Shareholdersequity
Groups share in associates
shareholders equity
Revenue
Profit for the year
Groups share in profit for the year
36
31 December 2012
10.920.448
9.626.260
1.294.188
8.332.072
31 December 2011
5.489.742
100.000
100.000
4.166.036
50.000
Financial information for TCI Kabin i Sistemleri San. ve Tic. A. as of 31 December 2012 and 31 December 2011 are as
follows:
Total assets
Total assets
Total liabilities
Shareholdersequity
Groups share in associates
shareholders equity
Revenue
Loss for the period year
Groups share in loss for the period year
31 December 2012
5.474.867
6.680.844
991.221
5.689.623
31 December 2011
5.693.147
5.693.147
2.352.958
3.340.189
2.901.708
1.703.496
Financial information for Turkbine Teknik Gaz Turbinleri Bakm Onarm A.. as of 31 December 2012 and 31 December
2011 are as follows:
Total assets
Total assets
Total liabilities
Shareholdersequity
Groups share in associates
shareholders equity
Revenue
Loss for the year
Groups share in loss for the year
31 December 2012
15.902.268
15.325.079
577.189
14.747.890
31 December 2011
16.714.081
16.714.081
348.330
16.365.751
7.373.945
8.182.875
1 January - 31 December
2012
1.252.656
(707.763)
(353.882)
1 January - 31 December
2011
304.185
(558.554)
(279.277)
Financial information for Goodrich THY Teknik Servis Merkezi Ltd. ti. as of 31 December 2012 and 31 December 2011
are as follows:
Total assets
Total assets
Total liabilities
Shareholdersequity
Groups share in associates
shareholders equity
Revenue
Loss for the year
Groups share in loss for the year
31 December 2012
13.538.722
7.284.016
6.254.706
1.029.310
31 December 2011
5.489.742
5.489.742
1.127.545
4.362.197
411.724
1.744.878
37
Financial information for Bosnia and Herzegovina Airlines as of 31 December 2012 and 31 December 2011 are as follows:
31 December 2012
31 December 2011
Total assets
69.857.068
Total liabilities
46.235.721
Shareholdersequity
23.621.347
11.574.460
Revenue
36.523.173
(12.052.361)
(11.574.460)
(5.905.657)
Sun Ekspress
Turkish DO&CO
TEC
TGS
THY Opet
Uak Koltuk
TCI
Trkbine Teknik Gaz Trbinleri Bakm Onarm A..
Goodrich
Bosnia and Herzegovina Airlines
Total
31 December 2012
31 December 2011
(10.463.081)
(2.781.600)
8.469.139
18.840.524
(16.950.794)
(28.531.554)
6.455.474
16.409.963
30.190.048
13.676.061
4.097.946
(3.479.684)
(205.262)
(353.882)
(279.277)
(1.241.472)
(1.149.182)
(11.574.460)
(5.905.657)
5.149.234
10.074.016
1 January-
31 December 2012
31 December 2011
Opening balance
54.720.000
49.570.000
(3.068.810)
10.319.703
6.333.810
(5.169.703)
Closing balance
57.985.000
54.720.000
Fair values of Groups investment property were obtained from the valuation performed by an independent valuation
firm, which is not a related party to Group. Valuation was performed by the independent valuation firm, which is
authorized by Capital Markets Board with reference to market prices.
The Group does not have any rent income from investment property.
38
39
(*)
321.520.088
(46.270.367)
24.324.384
(2.330.508)
(94.360.351)
202.883.246
173.733.226
139.665.173
9.373.184
73.594.821
124.814.112
129.847.406
(98.976.033)
376.616.472
9.373.184
198.408.933
64.597.647
(3.713.730)
3.337.720
-
461.185.261
(11.893.982)
29.345.241
(3.044.015)
Technical
equipments,
simulators and
vehicles
194.445.053
(13.372.432)
7.963.128
-
Land
improvements
and buildings
93.724.271
175.979.342
64.713.893
79.243.143
69.210.291
(10.871.418)
24.439.402
(523.204)
103.665.694
240.693.235
148.453.434
(32.665.326)
21.907.776
(668.343)
Other
equipments,
fixtures
1.200.376.816
4.659.039.951
10.964.666.395
9.571.718.829
3.291.791.980
(676.742.705)
848.529.631
(4.915.771)
1.815.991.128
2.825.895
15.623.706.346
12.863.510.809
(1.198.885.929)
2.145.180.214
(4.915.771)
Aircrafts
187.327.416
430.341.014
476.161.347
139.105.118
(9.554.028)
57.776.326
-
617.668.430
615.266.465
(40.357.310)
42.759.275
-
Spare
engines
(15.215.791)
145.803.610
227.991.751
214.628.220
185.035.834
(10.413.104)
49.368.777
(78.187.897)
373.795.361
399.664.054
(22.460.963)
107.991.879
(111.399.609)
Components and
repairable spare
parts
51.569.939
27.870.679
46.065.929
65.366.028
(11.725.708)
13.300.035
(154.625)
(15.215.791)
79.440.618
111.431.957
(19.301.794)
3.066.771
(540.525)
Leasehold
improvements
(6.478.687)
679.208.519
435.264.825
(8.151.636)
679.208.519
435.264.825
(16.786.206)
268.881.536
-
Construction
in
Progress
Total
5.496.198.325
12.693.339.589
11.092 594.872
1.200.376.816
4.136.626.986
(769.291.060)
1.021.076.275
(86.112.005)
1.815.991.128
(6.478.687)
18.189.537.914
15.229.221.858
(1.355.723.942)
2.627.095.820
(120.568.263)
As of 1 July 2012 The Group has implemented a new Enterprise Resource Planning (ERP), in this context certain changes have been made to the classification of tangible and intangible fixed assets.
Accumulated depreciation
Opening balance at 1 January 2012
Foreign currency translation adjustment
Depreciation charge for the year
Disposals
Transfer to non-current assets held-forsale
Transfers (*)
Closing balance at 31 December 2012
Net book value 31 December 2012
Net book value 31 December 2011
Cost
Opening balance at 1 January 2012
Foreign currency translation adjustment
Additions
Disposals
Transfer from non-current assets heldfor-sale
Transfers (*)
Closing balance at 31 December 2012
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
40
129.847.406
64.597.647
Disposals
2.956.914
10.808.549
50.832.184
Accumulated depreciation
194.445.053
Disposals
2.724.334
35.931.072
155.789.647
Additions
Cost
Land
improvements
and buildings
139.665.173
321.520.088
(15.228.236)
20.276.951
52.902.745
263.568.628
461.185.261
(15.228.236)
31.911.392
77.611.097
366.891.008
Technical
equipments,
simulators and
vehicles
(204.879.583)
3.623.965.020
2.318.163.982
9.080.064.151
Aircrafts
(204.879.583)
642.602.948
736.630.322
3.419.063.346
79.243.143
69.210.291
9.571.718.829
3.291.791.980
- (1.301.625.053)
(10.614.536)
18.766.183
157.035
60.901.609
148.453.434 12.863.510.809
- (1.953.802.761)
(10.614.536)
26.138.173
23.578.706
109.351.091
Other
equipments and
fixtures
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
476.161.347
139.105.118
(71.040.475)
64.197.367
31.613.763
114.334.463
615.266.465
(71.385.963)
230.449.737
93.871.278
362.331.413
214.628.220
185.035.834
(45.369.196)
39.430.049
38.423.601
152.551.380
399.664.054
(72.940.280)
68.915.393
76.143.305
327.545.636
Components and
Spare repairable spare
engines
parts
46.065.929
65.366.028
(84.415)
15.380.299
13.384.734
36.685.410
111.431.957
1.637.311
(316.644)
20.436.376
23.990.255
65.684.659
Leasehold
improvements
435.264.825
435.264.825
(1.637.311)
307.112.467
56.073.020
73.716.649
Construction in
Progress
11.092.594.872
4.136.626.986
(1.301.625.053)
(347.216.441)
803.610.711
883.920.749
4.097.937.020
15.229.221.858
(1.953.802.761)
(375.365.242)
4.311.652.892
2.705.362.715
10.541.374.254
Total
Other Rights
Total
24.445.066
113.740.124
138.185.190
(1.375.673)
(7.175.696)
(8.551.369)
Additions
16.552.664
16.552.664
Disposals
(718.942)
(718.942)
Transfers (*)
6.478.687
6.478.687
23.069.393
128.876.837
151.946.230
Cost
91.222.250
91.222.250
(5.513.033)
(5.513.033)
8.686.645
8.686.645
Disposals
(112.086)
(112.086)
Transfers (*)
6.478.687
6.478.687
100.762.463
100.762.463
23.069.393
28.114.374
51.183.767
24.445.066
22.517.874
46.962.939
Slot Rights
Other Rights
Total
20.007.450
87.477.119
107.484.569
4.437.616
15.444.865
19.882.481
Additions
13.284.156
13.284.156
Disposals
(2.466.016)
(2.466.016)
24.445.066
113.740.124
138.185.190
74.385.468
74.385.468
11.064.888
11.064.888
8.237.910
8.237.910
Disposals
(2.466.016)
(2.466.016)
91.222.250
91.222.250
46.962.939
Cost
Opening balance at 1 January 2011
Foreign currency translation adjustment
(*)
As of 1 July 2012 the Group has implemented a new Enterprise Resource Planning (ERP). In this context certain changes have been made
to the classification of property and equipment and intangible fixed assets.
41
20 GOODWILL
None (31 December 2011: None).
21 GOVERNMENT GRANTS AND INCENTIVES
Incentive certificate no:28.12.2011 / 99256 was obtained from Turkish Treasury for financing the aircrafts planned for
the period after 2010. According to this certificate, the Company will use the adventages for reduction of corporate tax,
customs duty exemption and support for insurance premium of employers. Please refer to Note: 2.7 for the accounting
of the related investment assistance.
22. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
Provisions for short-term liabilities are as follows:
31 December 2012
31 December 2011
35.516.181
26.224.798
Changes in the provisions for legal claims at 31 December 2012 and 2011 periods set out below:
1 January -
1 January -
31 December 2012
31 December 2011
26.224.798
20.480.602
15.507.398
6.236.668
Provisions released
(7.170.892)
(581.703)
954.877
89.231
42
a) Guarantees/Pledges/Mortgages (GPM) given by the group: Amount of letter of guarantees given is TL 103,501,040
(31 December 2011: TL 97,177,999)
31 December 2012
31 December 2011
Foreign
currency amount
TL equivalent
Foreign
currency amount
TL equivalent
103.501.040
97.177.999
-Collaterals
TL
11.882.222
11.882.222
10.419.036
10.419.036
EUR
6.719.618
15.802.526
7.536.458
18.417.595
USD
40.957.707
73.011.209
35.434.308
66.931.865
2.805.083
1.409.503
Other
B. Total amounts of GPM given on
the behalf of subsidiaries that are
included in full consolidation
103.501.040
97.177.999
The other CPMs given by the Company constitute 0% of the Companys equity as of 31 December 2012
(31 December 2011: 0%).
b) The Groups discounted retirement pay provision is TL 234,019,405. The Groups liability for retirement pay would be
approximately TL 421,270,210 as of 31 December 2012, if all employees were dismissed on that date.
43
23. COMMITMENTS
The detail of the Groups not accrued operational leasing debts related to aircrafts is as follows:
31 December 2012
31 December 2011
282.339.574
335.010.923
Between 1 5 years
810.999.803
1.000.864.431
81.178.443
218.425.929
1.174.517.820
1.554.301.283
To be delivered between the years 2010-2015, the Group signed a contract for 89 aircrafts with a total value of 11,8
billion US Dollars, according to the price lists before the discounts made by the aircraft manufacturing firms. 10 of these
aircrafts were delivered in 2010 and 29 of these aircrafts were delivered in 2011. To be delivered between the years 20132017, the Group signed a contract for 40 aircrafts with a total value of 10.5 billion US Dollars, according to the price lists
before the discounts made by the aircraft manufacturing firms. The Group has made an advance payment of 934 million
US Dollars relevant to these purchases as of 31 December 2012.
The Group also has operational lease agreement for 23 years related with the land for the construction of aircraft
maintenance hangar which is still under construction. The liabilities of the Group related with this lease agreements are
as follows:
31 December 2012
Less than 1 year
31 December 2011
2.081.088
1.934.234
Between 1 5 years
16.417.472
16.440.986
49.973.307
54.186.976
68.471.867
72.562.196
31 December 2012
31 December 2011
143.879.448
127.819.504
41.066.116
11.914.374
Salary accruals
Unused vacation provision
Due to personnel
Labor union agreement accrual (*)
3.178.359
3.525.186
106.364.433
188.123.923
249.623.497
(*)
23. Labor Union Agreement negotiations started at 2 Fabruary 2012 between the Group and Turkey Civil Aviation Labor Union (HAVA-).
The parties could not agree as of 31 December 2011 financial statements announcement dates. The Group has calculated and booked a
provision of TL 106.364.433 for salary increases attained to Labor Union Agreement for the period between 1 January 2011 and 31 December
2011. 23. Labor Union Agreement was signed between the Group and HAVA- at 2 August 2012 and calculated salary increases were paid.
44
31 December 2011
191.632.448
Under labor laws effective in Turkey, it is a liability to make legal retirement pay to employees whose employment is
terminated in such way to receive retirement pay. In addition, according to Article 60 of Social Security Law numbered
506 which was changed by the laws numbered 2422, dated 6 March 1981 and numbered 4447, dated 25 August 1999,
it is also a liability to make legal retirement pay to those who entitled to leave their work by receiving retirement pay.
Some transfer provisions related to service conditions prior to retirement are removed from the Law by the changed
made on 23 May 2002.
Retirement pay liability is subject to an upper limit of monthly TL 3,129 as of 1 January 2013
(1 January 2012: TL 2,917).
Retirement pay liability is not subject to any kind of funding legally. Provision for retirement pay liability is calculated
by estimating the present value of probable liability amount arising due to retirement of employees.
IAS 19 (Employee Benefits) stipulates the development of companys liabilities by using actuarial valuation methods
under defined benefit plans. In this direction, actuarial assumptions used in calculation of total liabilities are described
as follows:
Main assumption is that maximum liability amount increases in accordance with the inflation rate for every service
year. So, provisions in the accompanying financial statements as of 31 December 2012 are calculated by estimating
present value of contingent liabilities due to retirement of employees. Provisions in the relevant balance sheet dates are
calculated with the assumptions of 5.00% annual inflation rate (31 December 2011: 5.00%) and 7.63% discount rate.
(31 December 2011: 9.5%). Estimated amount of retirement pay not paid due to voluntary leaves and retained in the
Company is also taken into consideration as 2.40% (31 December 2011: 2.13%). Ceiling for retirement pay is revised
semi-annually. Ceiling amount of TL 3,129 which is in effect since 1 January 2013 is used in the calculation of Groups
provision for retirement pay liability.
Movement in the provision for retirement pay liability is as follows:
1 January -
1 January -
31 December 2012
31 December 2011
191.632.448
170.505.529
13.107.185
5.024.709
16.513.733
32.271.975
7.635.445
6.220.836
Interest charges
Actuarial loss
26.922.256
5.219.823
Payments
(21.791.662)
(27.610.424)
234.019.405
191.632.448
234.019.405
191.632.448
45
31 December 2011
Deferred VAT
57.924.708
48.561.653
35.473.673
12.040.036
21.096.986
18.467.423
47.736.722
18.297.778
17.984.689
8.693.312
14.191.310
17.968.896
Advances given
3.337.806
5.543.478
2.206.083
12.807.153
936.368
47.204.715
781.620
992.792
201.669.965
190.577.236
31 December 2012
31 December 2011
123.246.769
116.072.898
84.219.006
90.967.384
27.830.021
30.613.937
15.797.083
13.918.869
1.891.246
2.516.897
699.010
2.289.548
Other non-current assets are as follows:
Maintenance reserves for engines
227.816
253.683.135
256.607.349
31 December 2012
31 December 2011
480.887.247
392.633.037
Other short-term liabilities are as follows:
7.720.681
3.751.411
12.870.201
13.806.320
14.182.943
8.284.231
Other liabilities
Credit note for received aircrafts and simulators
46
1.360.052
1.079.126
1.034.502
517.021.124
420.588.627
31 December 2011
49.342.847
49.451.906
(25.877.761)
(22.930.646)
13.248.491
27.612.639
10.732.856
47.446.433
54.133.899
31 December 2012
31 December 2011
1.271.723.065
892.516.873
Flight liability is as follows;
396.752.754
386.796.767
1.668.475.819
1.279.313.640
27. SHAREHOLDERS EQUITY
The ownership structure of the Groups share capital is as follows:
Class
Republic of Turkey Prime Ministry
Privatization Adm.(*)
Other (Publicly held)
Paid-in capital
% 31 December 2012
A, C
49.12
589,465,086
49.12
50.88
610,534,914
50.88
1,200,000,000
589,465,086
610,534,914
1,200,000,000
Restatement difference
1,123,808,032
1,123,808,032
Restated capital
2,323,808,032
2,323,808,032
(*)
1,644 shares belonging to various private shareholders were not taken into consideration when the Group was included to the privatization
program in 1984. Subsequently, these shares were registered on behalf of Privatization Administration according to Articles of Association of
the Group, approved by the decision of the Turkish Republic High Planning Board on 30 October 1990.
As of 31 December 2012, the Groups issued and paid-in share capital consists of 119,999,999,999 Class A shares and
1 Class C share, all with a par value of Kr 1 each. These shares are issued to the name. The Class C share belongs to the
Republic of Turkey Prime Ministry Privatization Administration and has the following privileges:
Articles of Association 7: Positive vote of the board member representing class C share and approval of the Board of
Directors are necessary for transfer of shares issued to the name.
Articles of Association 10: The Board of Directors consists of nine members of which one member has to be nominated
by the class C shareholder and the rest eight members has to be choosen by an election between class A shareholders
top rated.
47
Articles of Association 14: The following decisions of the Board of Directors are subject to the positive vote of the class C
Shareholder:
a) As defined in Article 3.1. of the Articles of Association, taking decisions that will negatively affect the Companys
mission,
b) Suggesting change in the Articles of Association at General Assembly,
c) Increasing share capital,
d) Approval of transfer of the shares issued to the name and their registration to the Share Registry,
e) Making decisions or taking actions which will put the Company under commitment over 5% of its total assets
considering the latest annual financial statements prepared for Capital Market Board per agreement (this statement will
expire when the Companys shares held by Turkish State is below 20%),
f) Making decisions relating to merges and liquidation,
g) Making decisions to cancel flight routes or significantly decrease number of flights except for the ones that cannot
recover even its operational expenses subject to the market conditions.
Benefits of class C shares solely restricted Privatization High Council or another Public Institution which the High
Council delegates its authority. According to related part of the agreement, shares holded by foreign shareholders can
not excess 40% of total shares.
Restricted Profit Reserves
The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish Commercial Code
(TCC). The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum,
until the total reserve reaches 20% of the companys paid-in share capital. The second legal reserve is appropriated at
the rate of 10% per annum of all cash distributions in excess of 5% of the paid-in share capital. Under the TCC, the legal
reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid-in
share capital.
Foreign Currency Translation Adjustment
Method for consolidation purpose is, according to IAS 21, monetary items in statutory financial statements is
translated to USD using year-end exchange rates, non-monetary items in balance sheet, income/expenses and cash
flow are transleted to USD by using the exchange rate of the transaction date (historic rate), and currency translation
differences are presented under equity. Translation profit/loss from foreign currency transactions is presented under
currency translation item in financial income of income statement. Also, currency translation differences in equities
of the Groupss joint ventures; Gne Ekspres Havaclk A.. (Sun Express) and Bosnia Herzegovina Airlines which are
consolidated by using equity method, are presented under currency translation item. Foreign currency translation
differences are the changes due to foreign exchange rate changes in the shareholders equity Sun Express and Bosnia
Herzegovina Airlines, which are subsidiaries accounted for equity method.
Distribution of Dividends
Companies whose shares are traded at Istanbul Stock Exchange (ISE) are subject to the following dividend rules
determined by Capital Markets Board:
According to the Serial:IV No:27 Communiqu of Capital Markets Board, depending on the decision made in
shareholders meeting, the profit distribution can be made either by giving bonus shares to shareholders which are
issued either in cash or by adding dividend to capital or giving some amount of cash and some amount of bonus shares
to shareholders. If the primary dividend amount determined is less than 5% of the paid-in capital, the decision gives the
option of not to distribute the related amount as to keep within the equity.
48
In accordance with the Capital Markets Boards (the Board) Decree issued as of 27 January 2010 and numbered 02/51;
In relation to the profit distribution of earnings derived from the operations, minimum profit distribution is not required
for listed companies, and accordingly, profit distribution should be made based on the requirements set out in the
Boards Communiqu Serial: IV No: 27 Principles of Dividend Advance Distribution of Companies That Are Subject
To The Capital Markets Board Regulations, terms of articles of corporations and profit distribution policies publicly
disclosed by the companies,
Furthermore, based on the afore-mentioned decree, companies that are required to prepare consolidated financial
statements should calculate their net distributable profits, to the extent that they can be recovered from equity in
their statutory records, by considering the net profit for the period in the consolidated financial statements which are
prepared and disclosed in accordance with the Communiqu Serial: XI, No: 29,
Within the frame of Communiqu Series: XI, No: 29, amount disclosed in notes to financial statements; following the
deduction of companies retained earnings, total of remaining profit for the period and other total resources that may
apply to profit distribution,
Within the frame of 6th bulletin of Communiqu Series: IV No: 27, dividend distribution should be completed by the end
of 5th month following the end of the period.
The items of shareholders equity of the Company in the statutory accounts as of 31 December 2012 are as follows:
Paid-in capital
Share premium
Legal reserves
Extraordinary reserves (*)
1,200,000,000
181,185
55,692,565
198,959,553
9
13,804,176
806,615
(1,040,827,727)
1,214,388,943
1,643,005,319
49
1 January -
31 December 2012
31 December 2011
13.062.330.568
10.207.767.679
Scheduled flights
Passenger
Cargo and mail
1.206.772.563
966.114.928
14.269.103.131
11.173.882.607
Unscheduled flights
120.776.903
138.603.969
Other revenue
519.123.784
500.063.332
14.909.003.818
11.812.549.908
(11.893.596.710)
(9.803.269.512)
3.015.407.108
2.009.280.396
Net sales
Cost of sales (-)
Gross profit
Geographical details of revenue from the scheduled flights are as follows:
1 January -
1 January -
31 December 2012
31 December 2011
- Europe
4.723.073.136
3.823.409.344
- Far East
3.182.009.998
2.412.184.832
- Middle East
1.854.983.407
1.530.241.615
- America
1.412.641.210
952.638.688
- Africa
1.070.182.735
707.902.793
12.242.890.486
9.426.377.272
50
2.026.212.645
1.747.505.335
14.269.103.131
11.173.882.607
1 January -
31 December 2012
31 December 2011
Fuel expenses
5.159.187.276
3.998.588.861
Personnel expenses
1.818.591.560
1.640.829.647
1.055.443.680
888.159.416
Depreciation expenses
982.774.191
764.523.411
878.506.857
785.500.939
601.834.695
512.939.146
Maintenance expenses
390.551.585
384.995.476
312.866.150
396.538.392
184.498.773
158.170.704
111.974.938
24.062.482
Insurance expenses
85.463.250
56.258.201
Service expenses
83.845.381
49.738.978
58.979.928
35.903.438
Transportation expenses
31.819.834
23.575.019
Tax expenses
22.400.538
15.842.831
Utility expenses
12.430.824
9.470.581
102.427.250
58.171.990
Other sales
11.893.596.710
9.803.269.512
29. RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SALES AND DISTRIBUTION EXPENSES, GENERAL
ADMINISTRATIVE EXPENSES
1 January -
1 January -
31 December 2012
31 December 2011
1.593.367.677
1.284.859.256
374.221.814
365.283.678
1.967.589.491
1.650.142.934
51
1 January -
31 December 2012
31 December 2011
522.664.180
379.488.123
Personnel expenses
420.259.846
378.990.790
301.657.615
220.889.868
Advertising expenses
168.783.057
146.497.444
Service expenses
36.896.302
34.719.604
Rent expenses
32.422.743
22.029.930
Membership fees
14.002.199
17.383.173
Tax expenses
13.289.888
10.102.599
Communication expenses
11.725.347
9.695.660
Depreciation expenses
11.161.933
2.165.732
Fuel expenses
Other
1.410.455
1.587.250
59.094.112
61.309.083
1.593.367.677
1.284.859.256
General administrative expenses are as follows:
Personnel expenses
1 January -
1 January -
31 December 2012
31 December 2011
230.977.207
216.908.569
Depreciation expenses
35.826.796
45.159.478
Service expenses
32.794.768
17.524.775
Rent expenses
16.016.523
17.283.307
Communication expenses
12.326.828
11.717.857
Utility expenses
7.438.452
4.781.641
Tax expenses
2.909.490
3.281.011
Fuel expenses
2.059.057
911.604
Insurance expenses
1.299.876
5.752.145
Other
30. EXPENSES ACCORDING TO CATEGORIES
Expenses according to categories are explained in Notes 28 and 29.
52
32.572.817
41.963.291
374.221.814
365.283.678
351.142.323
62.319.152
47.250.258
23.183.077
43.866.276
15.521.333
13.653.379
16.267.517
14.088.535
11.403.048
7.762.460
6.333.810
5.746.140
4.318.765
50.867.807
600.682.892
25.096.497
11.354.928
10.791.868
5.020.748
4.294.173
5.493.104
25.098.340
160.190.646
Provision expense
1 January -
1 January -
31 December 2012
31 December 2011
28.869.760
31.969.921
4.942.022
11.775.619
9.854.839
18.094.063
5.169.703
329.671.431
43.666.621
396.680.737
32. FINANCIAL INCOME
Financial income consists of the following:
Interest income
Discount interest income
Income from derivative transactions
Foreign exchange gains
1 January -
1 January -
31 December 2012
31 December 2011
129.243.516
77.277.018
7.389.996
6.122.349
25.503.133
180.838.910
162.136.645
264.238.277
53
1 January -
1 January -
31 December 2012
31 December 2011
208.066.460
204.097.145
14.559.832
17.414.308
18.834.339
9.779.121
6.763.104
6.220.836
5.486.577
4.679.775
161.031.299
8.879.487
414.741.611
251.070.672
279.472.200
652.177.708
(329.671.431)
351.142.323
(15.000.211)
(43.034.077)
(615.614.312)
279.472.200
54
31 December 2011
32.616.486
18.956.251
(32.616.486)
(13.587.608)
5.368.643
Tax liability
Tax expense consists of the following items:
1 January -
1 January -
31 December 2012
31 December 2011
32.616.486
16.770.183
191.394.437
110.602.177
Tax expense
Tax effect related to other comprehensive income is as follows:
224.010.923
127.372.360
Amount
Tax (expense)
Amount
before tax
/income
after tax
( 228.479.860)
( 228.479.860)
1.535.719
( 307.144)
1.228.575
( 226.944.141)
( 307.144)
( 227.251.285)
Change in foreign currency translation adjustment that is included in other comprehensive income is TL 228,479,860
for the period 1 January 31 December 2012 (1 January 31 December 2011: TL 795,001,243). In addition, the effect of
taxation does not exist for the year.
Corporate Tax
The Group is subject to Turkish corporate taxes. Provision is made in the accompanying financial statements for the
estimated charge based on the Groups results for the years and periods. Turkish tax legislation does not permit a
parent company and its subsidiary to file a consolidated tax return. Therefore, provisions for taxes, as reflected in the
accompanying consolidated financial statements, have been calculated on a separate-entity basis.
Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding
back non-deductible expenses, and by deducting dividends received from resident companies, other exempt income and
investment incentives utilized. The effective tax rate in 2012 is 20% (2011: 20%).
In Turkey, advance tax returns are filed on a quarterly basis. Advance corporate income tax rate applied in 2012 is 20%
(2011: 20%). Losses can be carried forward for offset against future taxable income for up to 5 years. However, losses
cannot be carried back for offset against profits from previous periods.
55
Furthermore, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax
returns between 1-25 April following the close of the accounting year to which they relate. Tax authorities may, however,
examine such returns and the underlying accounting records and may revise assessments within five years.
Income Withholding Tax
In addition to corporate taxes, companies should also calculate income withholding taxes and funds surcharge on any
dividends distributed, except for companies receiving dividends who are Turkish residents and Turkish branches of
foreign companies. Income withholding tax is in use since 22 July 2006. Commencing from 22 July 2006, the rate has
been changed to 15% from 10% upon the Council of Ministers Resolution No: 2006/10731. Undistributed dividends
incorporated in share capital are not subject to income withholding tax.
Deferred Tax
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between its financial
statements as reported for IFRS purposes and its statutory tax financial statements. These differences usually result
in the recognition of revenue and expenses in different reporting periods for IFRS and tax purposes and they are given
below.
For calculation of deferred tax asset and liabilities, the rate of 20% (2011: 20%) is used.
In Turkey, the companies can not declare a consolidated tax return; therefore, subsidiaries that have deferred tax assets
position were not netted off against subsidiaries that have deferred tax liabilities position and disclosed separately.
The deferred tax assets and liabilities as of 31 December 2012 and 31 December 2011 are as follows:
31 December 2012
31 December 2011
(887.354.639)
(901.848.053)
(78.216.603)
(56.547.535)
Adjustment on inventories
(32.525.576)
(42.833.609)
152.179.387
119.292.064
46.503.155
38.326.490
17.216.979
14.950.671
13.141.314
10.493.700
1.581.391
7.288.257
5.963.723
6.360.975
11.641.538
2.382.874
Other
4.892.886
1.914.838
3.540.398
2.873.729
207.976.984
56
12.041.158
(744.083.660)
(574.679.843)
The changes of deferred tax liability as of 31 December 2012 and 2011 are as follows:
31 December 2012
31 December 2011
574.679.843
435.385.525
191.394.437
110.602.177
307.144
(15.499.305)
(22.297.764)
44.191.446
744.083.660
574.679.843
1 January -
1 January -
31 December 2012
31 December 2011
1.357.378.156
145.888.994
271.475.631
29.177.798
(12.445.209)
(8.802.684)
2.406.311
3.547.754
(36.770.976)
116.073.387
(1.029.847)
(6.539.544)
375.013
(6.084.351)
224.010.923
127.372.360
Earnings per share disclosed in the consolidated statements of income are determined by dividing the net income by
the weighted number of shares that have been outstanding during the period concerned.
In Turkey, companies can increase their share capital by making a pro-rata distribution of shares (bonus shares) to
existing shareholders from retained earnings. For the purpose of earnings per share computations, such bonus shares
are regarded as issued shares. Accordingly, the weighted average number of shares outstanding during the years has
been adjusted in respect of bonus shares issued without a corresponding change in resources, by giving them retroactive
effect for the period in which they were issued and for each earlier year.
Earnings per share is calculated by dividing net profit by weighted average number of shares outstanding in the relevant
period.
57
Number of total shares and calculation of earnings per share at 31 December 2012 and 2011:
1 January -
1 January -
31 December 2012
31 December 2011
120.000.000.000
100.000.000.000
20.000.000.000
120.000.000.000
120.000.000.000
120.000.000.000
120.000.000.000
1.133.367.233
18.516.632
0,94
0,02
31 December 2011
12.736.341
5.791.128
5.072.047
447.790
58.387
1.526.276
312.350
18.975.259
6.969.060
31 December 2012
31 December 2011
7.959
7.959
476
9.671
Other short-term receivables from related parties are as follows:
TCI
Trkbine Teknik
Uak Koltuk
Goodrich
96
1.814
38.638
8.531
58.082
Short-term trade payables to related parties that are acoounted by using the equity method (Note 10) are as follows:
THY Opet
TGS
Sun Express
Turkish DO&CO
TEC
Goodrich
Trkbine Teknik
TCI
58
31 December 2012
139.538.456
27.246.944
19.426.776
16.035.217
12.462.870
289.812
676
244
215.000.995
31 December 2011
127.045.062
21.907.112
25.136.455
6.855.313
180.943.942
Transactions with related parties that are accounted by using the equity method for the year ended as of 31 December
2012 are as follows:
1 January -
1 January -
31 December 2012
31 December 2011
Sun Ekspress
42.182.656
29.723.737
TGS
32.959.604
12.182.732
TEC
15.621.347
25.540.358
Turkish DO&CO
2.566.491
1.939.830
Goodrich
1.890.294
9.652.699
Sales
TCI
944.319
Trkbine Teknik
360.275
218.619
THY Opet
160.909
432.893
70.008
7.408.796
Purchases
THY Opet
29.231
96.785.134
87.099.664
1 January -
1 January -
31 December 2012
31 December 2011
3.192.744.391
2.074.655.627
Turkish DO&CO
385.433.214
349.856.592
TGS
311.898.310
302.633.375
Sun Ekspress
73.735.876
459.142
TEC
36.222.756
150.531.810
8.149.394
273.226
Goodrich
Trkbine Teknik
Bosnia Herzegovina Airlines
146.619
10.003.326
4.008.330.560
2.888.413.098
Transactions between the Group and Sun Express and Bosnia Herzegovina Airlines seat rental operations; transactions
between the Group and Turkish DO&CO are catering services and loan financing, transactions between the Group
and TGS are ground services, transactions between the Group and P&W T.T are engine maintenance services and the
transactions between the Group and THY OPET is the supply of aircraft fuel. Receivables from related parties are not
collateralized and maturity of trade receivables is 30 days.
The total amount of salaries and other short term benefits provided for the Chairman and the Members of Board of
Directors, General Manager, General Coordinator and Deputy General Managers are TL 6,301,658 (31 December 2011: TL
4,528,973).
59
Total debts
31 December 2012
31 December 2011
9.772.018.570
8.941.681.848
(1.832.501.330)
(1.683.057.811)
7.939.517.240
7.258.624.037
5.405.043.589
4.498.927.641
13.344.560.829
11.757.551.678
0,59
0,62
The risks of the Group, resulting from operations, include market risk (including currency risk, fair value interest rate
risk and price risk), credit risk and liquidity risk. The Groups risk management program generally seeks to minimize the
potential negative effects of uncertainty in financial markets on financial performance of the Group. The Group uses a
small portion of derivative financial instruments in order to safeguard itself from different financial risks.
Risk management, in line with policies approved by the Board of Directors, is carried out. According to risk policy,
financial risk is identified and assessed. By working together with Groups operational units, relevant instruments are
used to reduce the risk.
60
61
758.427.363
9.844.132
442.712.030
-
315.715.333
3.574.589
73.380.910
(73.380.910)
-
18.975.259
-
Third Party
Guarantees consist of the guarantees in cash and letters of guarantee obtained from the customers.
(**)
8.531
-
8.531
-
2.307.948.323
-
2.307.948.323
-
Other receivables
Deposits in
Related Party
Third Party
Receivables
18.975.259
-
Related Party
Trade receivables
The factors that increase in credit reliability such as guarantees received are not considered in the balance.
(*)
31 December 2012
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
1.821.162.590
-
1.821.162.590
-
Derivative
Banks
74.861.649
-
74.861.649
-
Instruments
62
58.082
58.082
Related Party
1.407.239.900
1.407.239.900
Third Party
Other receivables
The risk of a financial loss for the Group due to failing of one of the parties of the contract to meet its obligations is defined as credit risk.
The factors that increase in credit reliability such as guarantees received are not considered in the balance.
(**)
Guarantees consist of the guarantees in cash and letters of guarantee obtained from the customers.
(*)
-Impairment (-)
79.913.899
(79.913.899)
-Impairment(-)
2.847.053
175.793.905
C. Net book value of financial assets that are past due but
not impaired
582.012.926
6.969.060
5.168.078
757.806.831
Third Party
Receivables
6.969.060
Related Party
Trade receivables
-The part of maximum risk under guarantee with collateral etc. (**)
31 December 2011
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
1.639.073.653
1.639.073.653
Deposits in
Banks
80.366.577
80.366.577
Derivative
Instruments
63
95.288.491
110.229.680
3.574.589
389.096.243
191.075
183.386.997
Trade Receivables
31 December 2012
Other Receivables
Receivables
Deposits in Banks
Derivative
Instruments
Other
3.574.589
389.096.243
191.075
110.229.680
95.288.491
183.386.997
Total
The Groups credit risk is basically related to its receivables. The balance shown in the balance sheet is formed by the net amount after deducting the doubtful receivables arisen
from the Group managements forecasts based on its previous experience and current economical conditions. Because there are so many customers, the Groups credit risk is
dispersed and there is not important credit risk concentration.
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
64
2.847.053
255.707.804
Other
Receivables
Deposits in
Banks
Derivative
Instruments
Other
2.847.053
255.707.804
718.791
14.317.716
63.762.619
22.320.528
154.588.150
Total
As of the balance sheet date, The Group has no guarantee for past due receivables for which provisions were recognized.
As of balance sheet date, total amount of cash collateral and letter of guarantee, which is received by Group for past due not impaired receivable, is TL 3,574,589 (31 December
2011: TL 2,847,053).
718.791
154.588.150
31 December 2011
Trade
Receivables
Receivables
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
The main responsibility of liquidity risk management rests upon Board of Directors. The Board built an appropriate
risk management for short, medium and long term funding and liquidity necessities of the Group management. The
Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities.
The tables below demonstrate the maturity distribution of nonderivative financial liabilities and are prepared based on
the earliest date on which the Group can be required to pay. The interests that will be paid on the future liabilities are
included in the related maturities. The adjustment column shows the item which causes possible cash flow in the future
periods. The item in question is included in the maturity analysis and is not included balance sheet amount of financial
liabilities in the balance sheet.
Group manages liquidity risk by keeping under control estimated and actual cash flows and by maintaining adequate
funds and borrowing reserves through matching the maturities of financial assets and liabilities.
Liquidity risk table:
31 December 2012
Book value
Total cash
outflow
according to
the contract
(I+II+III+IV)
Less than 3
months (I)
3-12
months (II)
1-5
years (III)
More than
5 years (IV)
823.054.902 4.291.572.222
4.624.307.819
8.666.993.598
9.984.187.644
245.252.701
912.324.274
913.005.421
913.005.421
31.064.076
31.064.076
31.064.076
9.610.381.948
10.928.257.141 1.189.322.198
823.054.902 4.291.572.222
4.624.307.819
31 December 2011
Book value
Non-derivative
financial liabilities
Finance lease
obligations
7.912.882.833
Trade payables
870.440.470
Other financial
liabilities
3.487.463
Total
8.786.810.766
Total cash
outflow
according to
the contract
(I+II+III+IV)
Less than
3 months (I)
9.063.046.374
1.006.176.118
3.612.510
10.072.835.002
3-12
months (II)
1-5
years (III)
More than
5 years (IV)
229.775.641
869.723.250
734.536.609 3.599.737.058
136.452.868
-
4.498.997.066
-
3.612.510
1.103.111.401
870.989.477 3.599.737.058
4.498.997.066
65
31 December 2012
Book value
Total cash
outflow
according to
the contract
(I+II+III+IV)
Less than 3
months (I)
3-12
months (II)
1-5
years (III)
More than
5 years (IV)
Derivative financial
(liabilities)/assets net
Derivative cash inflows
outflows,net
(86.774.973)
(71.960.047)
(16.065.497)
(9.064.927)
(39.600.180)
(7.229.443)
Total
(86.774.973)
(71.960.047)
(16.065.497)
(9.064.927)
(39.600.180)
(7.229.443)
Book value
Total cash
outflow
according to
the contract
(I+II+III+IV)
Less than 3
months (I)
3-12
months (II)
1-5
years (III)
More than
5 years (IV)
31 December 2011
(56.835.471)
10.220.246
(13.597.247)
(43.600.906)
(9.857.564)
(56.835.471)
10.220.246
(13.597.247)
(43.600.906)
(9.857.564)
The Groups activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. Market risk exposures of the Group are measured using sensitivity analysis. There has been no change to
the Groups exposure to market risks or the manner in which it manages and measures the risk.
66
1.Trade receivables
2a.Monetary financial assets
2b.Non monetary financial assets
3.Other
4.Current assets (1+2+3)
5.Trade receivables
6a.Monetary financial assets
6b.Non monetary financial assets
7.Other
8.Non current asstes (5+6+7)
9.Total assets (4+8)
10.Trade payables
11.Financial liabilities
12a.Other liabilitites, monetary
12b.Other liabilitites, non monetary
13.Current liabilities (10+11+12)
14.Trade payables
15.Financial liabilities
16a.Other liabilitites, monetary
16b.Other liabilitites, non monetary
17.Non current liabilities (14+15+16)
18.Total liabilities (13+17)
19.Net asset / liability position of offbalance sheet derivatives (19a-19b)
19a.Off-balance sheet foreign
currency derivative assets
19b.Off-balance sheet
foreigncurrency derivative liabilities
20.Net foreign currency asset/
(liability) position (9-18+19)
21.Net foreign currency asset /
liability position of monetary items
(UFRS 7.B23) (=1+2a+5+6a-10-1112a-14-15-16a)
22.Fair value of foreign currency
hedged financial assets
23.Hedged foreign currency assets
24.Hedged foreign currency
liabilities
25.Exports
26.Imports
TL Equivalent
660.404.241
34.601.987
184.577.753
879.583.981
88.027.061
88.027.061
967.611.042
602.781.028
547.464.447
35.808.560
33.859.220
1.219.913.255
4.481.085.105
36.752.921
4.517.838.026
5.737.751.281
31 December 2012
TL
Euro
93.711.562
351.947.508
4.841.781
28.829.747
137.194.090
30.325.674
235.747.433
411.102.929
41.019.659
6.374.765
41.019.659
6.374.765
276.767.092
417.477.694
421.214.368
96.829.947
37.215.631
510.248.816
13.729.271
12.513.007
33.760.522
98.698
505.919.792
619.690.468
400.618.948 4.080.466.157
36.752.921
437.371.869 4.080.466.157
943.291.661 4.700.156.625
GBP
58.330.075
158.610
Other
156.415.096
771.849
632.795
59.121.480
40.617.449
40.617.449
99.738.929
10.664.330
319.513
10.983.843
10.983.843
16.425.194
173.612.139
15.188
15.188
173.627.327
74.072.383
9.246.769
83.319.152
83.319.152
(4.770.140.239)
(666.524.569) (4.282.678.931)
88.755.086
90.308.175
(5.008.885.833)
(810.977.796) (4.319.280.672)
47.504.842
73.867.793
372.993.006 7.288.290.718
697.737.895
606.385.473
67
31 December 2011
1.Trade receivables
2a.Monetary financial assets
2b.Non monetary financial assets
3.Other
4.Current assets (1+2+3)
TL Equivalent
TL
Euro
GBP
Other
552.043.752
185.113.977
109.556.908
20.855.509
236.517.358
1.379.232.996
355.589.247
827.874.879
1.037.973
194.730.897
783.280.900
777.111.536
3.880.392
911.868
1.377.104
2.714.557.648 1.317.814.760
432.625.359
941.312.179
22.805.350
5.Trade receivables
12.669.299
634.694
7.647.026
270.045
4.117.534
12.669.299
634.694
7.647.026
270.045
4.117.534
2.727.226.947 1.318.449.454
948.959.205
23.075.395
436.742.893
125.831.072
10.Trade payables
724.967.077
339.514.208
250.583.484
9.038.313
11.Financial liabilities
445.023.191
524.414
444.498.777
39.346.934
27.913.536
7.516.665
394.154
3.522.579
632.032
620.338
11.694
1.209.969.234
368.572.496
702.610.620
9.432.467
129.353.651
3.286.402.558
3.286.402.558
3.018.744
34.330.826
26.521.260
4.790.822
3.320.733.384
26.521.260 3.291.193.380
3.018.744
4.530.702.618
395.093.756 3.993.804.000
9.432.467
132.372.395
254.424.060
254.424.060
254.424.060
254.424.060
19b.Off-balance sheet
foreigncurrency derivative liabilities
20.Net foreign currency asset/
(liability) position (9-18+19)
(1.549.051.611)
923.355.698 (2.790.420.735)
13.642.928
304.370.498
(2.598.793.838)
146.229.806 (3.056.360.519)
12.461.015
298.875.860
68
910.380.714
262.108.817 5.657.141.943
37.519.114
460.443.020
If foreign currency
appreciated 10 %
If foreign currency
depreciated 10 %
(66.652.457)
66.652.457
(66.652.457)
66.652.457
(428.267.893)
428.267.893
(428.267.893)
428.267.893
8.875.509
(8.875.509)
8.875.509
(8.875.509)
9.030.818
(9.030.818)
9.030.818
(9.030.818)
(477.014.023)
477.014.023
69
31 December 2011
Profit / (Loss) Before Tax
If foreign currency
appreciated 10 %
If foreign currency
depreciated 10 %
92.335.570
(92.335.570)
92.335.570
(92.335.570)
(279.042.074)
279.042.074
(279.042.074)
279.042.074
1.364.293
(1.364.293)
1.364.293
(1.364.293)
30.437.050
(30.437.050)
30.437.050
(30.437.050)
(154.905.161)
154.905.161
31 December 2011
5.311.293.033
3.928.078.910
3.355.700.565
3.984.803.923
(59.611)
(62.888.643)
As indicated in Note 39, the Group as of 31 December 2012 fixed the interest rate for TL 284,578,858 of floatinginterestrated financial liabilities via an interest rate swap contract.
70
In standard maturities and conditions, fair values of financial assets and liabilities which are traded in an active
market are determined as quoted market prices.
Fair values of derivative instruments are calculated by using quoted prices. In absence of prices, discounted cash
flows analysis is used through applicable yield curve for maturities of derivative instruments (forward and swaps).
71
72
Financial liabilities
Bank borrowings
Finance lease obligations
Other financial liabilities
Trade payables
70.753.275
-
6.796.870
-
Derivative
instruments
accounted for
hedge accounting
59.464.968
-
9.765.473
-
2.049.244
8.666.993.598
31.064.076
912.324.274
84.117.807
-
73.569.707
-
1.767.872
-
7.912.882.833
3.487.463
870.440.470
Derivative
instruments at
Investments
fair value through available for sale at Financial liabilities
profit/(loss)
cost value
at amortized cost
102.171.654
-
65.096.176
-
Derivative
instruments at
Investments
fair value through available for sale at Financial liabilities
profit/(loss)
cost value
at amortized cost
The Group considers the book values for financial assets approximate their fair values.
1.549.524.710
133.533.101
764.775.891
1.407.297.982
Financial Assets
Cash and cash equivalents
Financial investments
Trade receivables
Other receivables
Loans and
Receivables
Financial liabilities
Bank borrowings
Finance lease obligations
Other financial liabilities
Trade payables
31 December 2011
Balance Sheet
1.355.542.536
476.958.794
777.402.622
2.307.956.854
Loans and
Receivables
Financial Assets
Cash and cash equivalents
Financial investments
Trade receivables
Other receivables
31 December 2012
Balance Sheet
Derivative
instruments
accounted for
hedge accounting
(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
7.912.882.833
158.358.545
870.440.470
1.549.524.710
215.667.550
764.775.891
1.407.297.982
Book Value
8.666.993.598
192.700.698
912.324.274
1.355.542.536
553.869.687
777.402.622
2.307.956.854
Book Value
8
8
9
10
6
7
10
11
Note
8
8
9
10
6
7
10
11
Note
First level: Financial assets and liabilities, are valued with the stock exchange prices in the active market for the
assets and liabilities same with each other.
Second level: Financial assets and liabilities are valued with input obtained while finding the stock exchange price
of the relevant asset or liability mentioned in the first level and the direct or indirect observation of price in the
market.
Third level: Financial assets and liabilities are valued by the input that does not reflect an actual data observed in
the market while finding the fair value of an asset or liability.
Financial assets and liabilities, which are presented in their fair values, level reclassifications are as follows:
Fair value level as of the reporting date
Financial assets
Financial assets at fair value
31 December 2012
Level 1 TL
Level 2 TL
Level 3 TL
65.096.176
65.096.176
9.765.473
9.765.473
74.861.649
74.861.649
102.171.654
102.171.654
59.464.968
59.464.968
161.636.622
161.636.622
73
74
Groups derivative instruments arisen from transactions stated above and their balances as of 31 December 2012 and 31
December 2011 are as follows:
31 December 2012
Fixed-paid/floating received interest rate swap
contracts for hedging against cash flow risks
of interest rate
Forward fuel purchase contracts for hedging
against cash flow risk of fuel prices
4 way collar contracts for hedging against
cash flow risk of fuel prices
Fair values of derivative instruments for
hedging purposes
Cross-currency swap contracts not accounted
for hedge accounting
Interest rate swap contracts not accounted for
hedge accounting
Forward currency contracts not for hedging
purposes
Fair values of derivative instruments not for
hedging purposes
Total
31 December 2011
Fixed-paid/floating received interest rate swap
contracts for hedging against cash flow risks
of interest rate
Forward fuel purchase contracts for hedging
against cash flow risk of fuel prices
4 way collar contracts for hedging against
cash flow risk of fuel prices
Fair values of derivative instruments for
hedging purposes
Cross-currency swap contracts not accounted
for hedge accounting
Interest rate swap contracts not accounted for
hedge accounting
Forward currency contracts not for hedging
purposes
Fair values of derivative instruments not for
hedging purposes
Total
Positive
fair value
Negative
fair value
Total
(59.464.968)
(59.464.968)
9.765.473
9.765.473
9.765.473
(59.464.968)
(49.699.495)
20.161.677
(35.253.615)
(15.091.938)
41.005.786
(52.672.105)
(11.666.319)
3.928.713
(14.245.934)
(10.317.221)
65.096.176
(102.171.654)
(37.075.478)
74.861.649
(161.636.622)
(86.774.973)
Positive
fair value
Negative
fair value
Total
(62.888.643)
(62.888.643)
6.796.870
6.796.870
(7.864.632)
(7.864.632)
6.796.870
(70.753.275)
(63.956.405)
43.169.453
(61.992.542)
(18.823.089)
20.717.103
(20.776.714)
(59.611)
9.683.151
(1.348.551)
8.334.600
73.569.707
(84.117.807)
(10.548.100)
80.366.577
(154.871.082)
(74.504.505)
75
Hedging against
fuel risk
Hedging against
interest risk
Total
9.765.473
(59.464.968)
(49.699.495)
(1.255.299)
(1.255.299)
5.679.985
5.679.985
(1.567.896)
(9.888.384)
(11.456.280)
Total
13.877.562
(70.608.651)
(56.731.089)
Deferred tax
(2.775.512)
14.121.730
11.346.218
11.102.050
(56.486.921)
(45.384.871)
76
77
As of December 2011, TL12,815,279 part of the VAT Return item, which was stated under Shor-term Other
Receivables,is now classified underOther Current Assets.
As of December 2011,TL125,047 part of the Personnel Credit Card Liability item, which was stated underShort-term
Financial Liabilities,is now cliassified under Trade Payables.
As of December 2011, TL 497,573 part of the Debt to Personnel and TL 317,867 of Debt to Social Security Institution
item,both of them was stated under Trade Payables,is now classified under Short-term Benefits of Employeeand
Short-term Other Liabilites ,respectively.
As of December 2011, TL136,452,869 part of the Landing ve Passenger Service Charges item, which was stated under
Trade Payables,is now classified under Flight Liability Generating from Ticket Sales.
As of December 2011, TL 2,172,969 part of the Taxes Collected from Abroad item, which was stated underOther Shortterm Liabilities,is now classified under Short-term Other Payables.
As of December 2011, TL67,767,337 part of the Miscellaneous Service Advances item, which was stated under Other
Short-term Liabilities,is now classified under Flight Liability Generating from Ticket Sales.
As of December 2011, TL 1,500,183 part of the Trade Payables item,which was stated under Passenger Flight
Liabilities,is now classified under Short-term Trade Payables.
As of December 2011, TL 91,499 part of the Taxes Payable item,which was stated under Other Short-term Liability ,is
now classified Other Short-term Debts.
As of December 2011, TL 4,473,928 part of the Agency Incentive Premium Payablesitem,which was stated under
Other Short-term Liabilites, is now classified under Short-term Trade Payables.
78
79
Financial
TURKISH AIRLINES 2012 Financial Statements and Notes
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